TORONTO, March 19, 2013 /CNW/ - A disciplinary hearing in the matter of
Luigi Francesco Ciardullo (the "Respondent") was held today in Toronto,
Ontario before a Hearing Panel of the MFDA's Central Regional Council.
The Hearing Panel found that the allegations set out in the Notice of
Hearing dated September 11, 2012 had been established and imposed the
following sanctions and costs at the conclusion of the hearing:
a permanent prohibition from conducting securities related business in
any capacity while in the employ of, or associated with, any MFDA
a fine of $500,000; and
costs of $7,500.
The Notice of Hearing contained the following allegations:
Allegation #1: Between March 2006 and November 26, 2010, the Respondent engaged in
personal financial dealings with clients by accepting a total of at
least $385,609 from at least 15 clients, at least $350,209 of which the
Respondent has failed to repay or otherwise account for, contrary to
MFDA Rules 2.1.4 and 2.1.1.
Allegation #2: On April 2, 2009, the Respondent made false statements to MFDA Staff
during the course of an investigation when he stated that he had only
engaged in personal financial dealings with one client when he knew
that to be an incorrect response, thereby:
a) failing to comply with his obligations under s. 22.2 of MFDA By-law
No. 1; and
b) failing to observe high standards of ethics and conduct in the
transaction of business, contrary to MFDA Rule 2.1.1
Allegation #3: Commencing April 19, 2011, the Respondent has failed or refused to
provide documents and information and to attend an interview requested
by MFDA Staff during the course of an investigation, contrary to s.
22.1 of MFDA By-law No. 1.
The Hearing Panel advised that it will issue written reasons for its
decision in due course. A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca.
The MFDA is the self-regulatory organization for Canadian mutual fund
dealers, regulating the operations, standards of practice and business
conduct of its 115 Members and their approximately 80,000 Approved
Persons with a mandate to protect investors and the public interest.
SOURCE: Mutual Fund Dealers Association of Canada
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